As the global economy continues to rebound from the pandemic, businesses are poised to embrace transformative technologies that will reshape operations and drive growth. Understanding these key technological developments is crucial for companies aiming to stay competitive and innovative in the rapidly evolving business landscape.
Technology trends to watch for in 2025 include:
- Cloud storage and optimization
- AI and automation
- Compliance and security
- System integration and data management
- SaaS sprawl and management
- Sustainability in technology
- Skill development and talent management
2025 Business Technology Trends
To remain competitive in the fast-changing technology landscape, organizations must strike a balance between innovation and optimization. These trends highlight the continuous digital transformation in businesses, emphasizing the need to harness advanced technologies while effectively managing costs, compliance, and complexity.
1. Cloud storage and optimization
Cloud storage and optimization will be a significant business technology trend in 2025 due to the evolving needs of organizations and the maturation of cloud technologies. The growth of multi-cloud and hybrid cloud strategies will be particularly notable, with large-sized companies expected to adopt a multi-cloud strategy by 2025.
This approach allows businesses to:
- Leverage the strengths of multiple providers
- Optimize performance
- Enhance redundancy
- Mitigate risks
As cloud environments become more complex, there will be an increased focus on cost optimization tools and practices. Organizations will invest in cloud optimization and cost management solutions to monitor and control cloud spending effectively.
This trend is driven by the need to balance the benefits of cloud adoption with budget pressures. The result is the implementation of policies for resource allocation and the use of cost analytics for informed decision-making.
The integration of edge computing will also play a crucial role in cloud optimization. By pushing data processing closer to the source, edge computing reduces strain on network bandwidth and enhances efficiency. This approach is particularly valuable for organizations dealing with large volumes of data or requiring real-time processing capabilities.
These developments reflect the ongoing evolution of cloud technologies. As IT strategies become more sophisticated, companies will seek to maximize the benefits of cloud computing while managing costs and complexity.
2. AI and automation
AI seemed like it was everywhere in 2024, but the reality is that we’re only scratching the surface. AI and automation will be a major business technology trend in 2025 thanks to their rapidly expanding capabilities and applications across industries.
Generative AI, in particular, will see widespread adoption, with an expected 33% of enterprise software applications by 2028, up from less than 1% in 2024. This includes agentic AI—a type of artificial intelligence system that can autonomously make decisions and take actions to achieve specific goals.
This expansion will drive innovation in:
- Content creation
- Customer service
- Operational efficiencies
AI’s role in intelligent data management within cloud environments will become increasingly crucial as organizations grapple with growing data volumes and complexity.
AI-powered tools will help enhance:
- Data analysis
- Security
- Decision-making processes
This will enable businesses to extract more value from their cloud investments.
The acceleration of process automation will be another key aspect of this trend. AI-driven automation will streamline workflows, reduce human error, and increase productivity across various business functions. It’s estimated that by 2028, at least 15% of day-to-day work decisions will be made autonomously through agentic AI, up from essentially zero in 2024.
These advancements in AI and automation will not only boost efficiency but also create new opportunities for innovation and competitive advantage. This will make them essential components of business technology strategies in 2025.
3. Compliance and security
New regulations around AI and data privacy are expected to emerge in 2025, creating compliance challenges for businesses. For example, organizations will need to adapt their practices to ensure ethical AI use and protect user data privacy. This is especially true in light of expanding AI applications.
Another example is the rise of quantum computing. This will make the adoption of quantum-safe encryption increasingly urgent as quantum computing advances threaten traditional cryptographic methods. In response, the U.S. government is already recommending agencies transition to post-quantum cryptography between 2025 and 2030.
Cybersecurity insurance will also become more important. As cyber threats become more sophisticated, organizations will need to reassess their coverage to protect against financial losses from potential breaches and attacks. This trend reflects the increasing recognition of cybersecurity as a critical business risk requiring comprehensive protection.
4. System integration and data management
Organizations will face major challenges in integrating systems and data, particularly during mergers and acquisitions or major system overhauls. The growing volume and complexity of data will make migration and integration more daunting.
Data fabric and mesh architectures will likely emerge as solutions to address the complexity of data integration across disparate sources, including environments such as:
- On-premises
- Cloud
- Edge environments
These approaches will provide a unified view of data and promote decentralized data ownership.
Blockchain technology may be integrated into cloud storage solutions to ensure data integrity and enhance security. This integration could offer immutable audit trails and improve trust in data management processes, especially in industries requiring high levels of data integrity and compliance.
5. SaaS sprawl and management
As organizations grapple with the proliferation of cloud-based applications, SaaS sprawl and management will become more significant in 2025. SaaS sprawl is when you have more SaaS applications than necessary. By leveraging analytics and real-time monitoring, companies can optimize their SaaS portfolios, reduce redundancies, and maximize ROI.
Effective strategies for managing SaaS portfolios will become crucial, including:
- Comprehensive application inventories
- Regular usage audits
- Cost optimization techniques
Companies should focus on centralizing SaaS procurement and implementing robust onboarding and offboarding processes to control sprawl.
Cloud monitoring tools will gain importance as businesses seek to manage complex multi-cloud and SaaS environments. These tools will provide critical insights into application usage, costs, and performance, enabling organizations to make data-driven decisions about their SaaS investments.
6. Sustainability in technology
Organizations are expected to increasingly prioritize environmental responsibility in 2025. Cloud providers will shift towards eco-conscious strategies, with major players like Google aiming for 24/7 carbon-free energy by 2030. This trend will drive the adoption of renewable energy sources and innovative cooling technologies in data centers.
Sustainability goals will profoundly impact technology decisions, influencing:
- Hardware choices
- Software design
- Resource allocation
Companies will prioritize energy-efficient solutions and consider the carbon footprint of their digital operations. This focus on sustainability will not only reduce environmental impact but also lead to cost savings and improved brand reputation, making it a crucial factor in technology strategy and investment decisions.
7. Skill development and talent management
The increasing adoption of advanced cloud and AI solutions will create new demands for specialized skills. This will cause organizations to face shortages of professionals capable of managing and optimizing these complex technologies.
To address this challenge, companies will need to invest heavily in training and development programs. These investments will be essential for upskilling existing employees and attracting new talent.
Such investments may include:
- Continuous learning initiatives
- Personalized development plans
- Partnerships with educational institutions
These strategies will become critical for businesses to maintain a competitive edge and ensure their workforce remains adaptable to emerging technologies.
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